Dubai: Pakistan International Airlines Corp (PIA), the national carrier of Pakistan, yesterday announced that it raised $90 million (Dh330 million) through an Islamic syndicated fin-ancing facility.

The facility was arranged by Abu Dhabi Islamic Bank, Al Hilal Bank, Citibank, and United Bank Limited as mandated lead arrangers and joint bookrunners.

Clifford Chance and Haidermota & Co acted as legal counsel to the arrangers. PIA was represented by Mandviwalla & Zafar.

The airline expects to increase the transaction to $100 million with Warba Bank in Kuwait joining the facility as a lead arranger.

"The three-year facility will be used for PIA's general corporate purposes and reflects investor confidence in the airline. The facility represents the first syndicated commercial foreign currency financing for a Pakistani obligor since 2007," PIA said in a statement.

"This facility re-introduces the airline in the international financial markets and further develops our banking relationships in the region," said M. Salim Sayani, PIA's Chief Financial Officer.

The accumulated losses of PIA have exceeded Rs100 billion, it was stated at a meeting of the National Assembly Standing Committee on Defence last week.

"This funding will allow the airline to implement its five-year business plan, which includes financial restructuring and a fleet renewal programme through which the airline will add five wide body and 39 narrow body modern aircraft," said Sayani.

MY GULF NEWS

GulfNews.com is the most widely read newspaper, and online site in English in the Middle East. With a daily BPA audited paid circulation of over 108,000, and an online audience of 3.5 million uniques every month, it is your go to source for information on the region. Sign up below to begin personalising your experience